Amended in Senate June 23, 2016

Amended in Senate June 13, 2016

Amended in Assembly May 4, 2016

Amended in Assembly April 26, 2016

Amended in Assembly April 12, 2016

Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2719


Introduced by Assembly Member Eduardo Garcia

(Principal coauthor: Senator Hueso)

(Coauthor: Assembly Member Brown)

February 19, 2016


An act to amend Sections 14005, 14013, 14200, 14206, 14221, and 14510 of the Unemployment Insurance Code, relating to workforce development.

LEGISLATIVE COUNSEL’S DIGEST

AB 2719, as amended, Eduardo Garcia. Workforce development: out-of-school youth.

The federal Workforce Innovation and Opportunity Act of 2014 provides for workforce investment activities, including activities in which states may participate. The California Workforce Innovation and Opportunity Act of 2014 (state act) establishes the California Workforce Development Board, which is responsible for assisting the Governor in the development and continuous improvement of California’s workforce investment system. The state act also contains various programs for job training and employment investment, as specified. The state act requires the board to assist the Governor in helping individuals with barriers to employment achieve economic security and upward mobility by implementing policies that encourage the attainment of marketable skills relevant to current labor market trends. The state act defines an individual with employment barriers to include youths who are individuals with disabilities, homeless youths, and youths who are in, or who have aged out of, the foster care system.

This bill would include within the definition of an individual with employment barriers an out-of-school youth, as defined, would revise the duties of the board regarding out-of-school youth, as specified, and would define a school operating in partnership with United States Department of Labor programs, as specified.

Existing law requires the local chief elected officials in a local workforce development area to form, pursuant to specified guidelines, a local workforce development board to, among other things, plan and oversee the workforce development system and develop a comprehensive 4-year local plan. Existing law requires the Governor to establish, through the California Workforce Development Board, standards for certification of high-performance local workforce investment boards, in accordance with specified criteria. Existing law requires the local workforce development boards to, with representatives of secondary and postsecondary education programs, lead efforts in the local area to develop and implement career pathways within the local area. Existing law provides that school districts and county offices of education are eligible to apply to local workforce development boards to provide basic skills training and skills necessary for attaining a secondary school diploma.

This bill would revise the criteria to include references to out-of-school youth and schools operating in partnership with United States Department of Labor programs, as specified, and, for the purposes of that requirement on local workforce development boards to lead efforts to develop and implement career pathways, provide that secondary and postsecondary education programs include specified entities. The bill would instead provide that school districts, county offices of education, and schools operating in partnership with United States Department of Labor programs are eligible to apply to local workforce development boards to provide basic skills training and skills necessary for attaining a secondary school diploma, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 14005 of the Unemployment Insurance
2Code
is amended to read:

3

14005.  

For purposes of this division:

4(a) “Board” means the California Workforce Development
5Board.

6(b) “Agency” means the Labor and Workforce Development
7Agency.

8(c) “Career pathways,” “career ladders,” or “career lattices” are
9an identified series of positions, work experiences, or educational
10benchmarks or credentials with multiple access points that offer
11occupational and financial advancement within a specified career
12field or related fields over time. “Career pathways,” “career
13ladders,” and “career lattices” offer combined programs of rigorous
14and high-quality education, training, and other services that do all
15of the following:

16(1) Align with the skill needs of industries in the economy of
17the state or regional economy involved.

18(2) Prepare an individual to be successful in any of a full range
19of secondary or postsecondary education options, including
20apprenticeships registered under the National Apprenticeship Act
21of 1937 (29 U.S.C. Sec. 50 et seq.), except as in Section 3226 of
22Title 29 of the United States Code.

23(3) Include counseling to support an individual in achieving the
24individual’s education and career goals.

25(4) Include, as appropriate, education offered concurrently with
26and in the same context as workforce preparation activities and
27training for a specific occupation or occupational cluster.

28(5) Organize education, training, and other services to meet the
29particular needs of an individual in a manner that accelerates the
30educational and career advancement of the individual to the extent
31practicable.

32(6) Enable an individual to attain a secondary school diploma
33or its recognized equivalent, and at least one recognized
34postsecondary credential.

P4    1(7) Help an individual enter or advance within a specific
2occupation or occupational cluster.

3(d) “Cluster-based sector strategies” mean methods of focusing
4workforce and economic development on those sectors that have
5demonstrated a capacity for economic growth and job creation in
6a particular geographic area.

7(e) “Data driven” means a process of making decisions about
8investments and policies based on systematic analysis of data,
9which may include data pertaining to labor markets.

10(f) “Economic security” means, with respect to a worker, earning
11a wage sufficient to support a family adequately, and, over time,
12to save for emergency expenses and adequate retirement income,
13based on factors such as household size, the cost of living in the
14worker’s community, and other factors that may vary by region.

15(g) “Evidence-based” means making use of policy research as
16a basis for determining best policy practices. Evidence-based
17policymakers adopt policies that research has shown to produce
18positive outcomes, in a variety of settings, for a variety of
19populations over time. Successful, evidence-based programs deliver
20quantifiable and sustainable results. Evidence-based practices
21differ from approaches that are based on tradition, belief,
22convention, or anecdotal evidence.

23(h) “High-priority occupations” mean occupations that have a
24significant presence in a targeted industry sector or industry cluster,
25are in demand, or projected to be in demand, by employers, and
26pay or lead to payment of a wage that provides economic security.

27(i) (1) “In-demand industry sector or occupation” means either
28of the following:

29(A) An industry sector that has a substantial current or potential
30impact, including through jobs that lead to economic
31self-sufficiency and opportunities for advancement, on the state,
32regional, or local economy, as appropriate, and that contributes to
33the growth or stability of other supporting businesses, or the growth
34of other industry sectors.

35(B) An occupation that currently has or is projected to have a
36number of positions, including positions that lead to economic
37self-sufficiency and opportunities for advancement, in an industry
38sector so as to have a significant impact on the state, regional, or
39local economy, as appropriate.

P5    1(2) The determination of whether an industry sector or
2occupation is “in-demand” under this subdivision shall be made
3by the board or local board, or through the regional planning
4process in which local boards participate under the Workforce
5Innovation and Opportunity Act, as appropriate, using state and
6regional business and labor market projections, including the use
7of labor market information.

8(j) “Individual with employment barriers” means an individual
9with any characteristic that substantially limits an individual’s
10ability to obtain employment, including indicators of poor work
11history, lack of work experience, or access to employment in
12nontraditional occupations, long-term unemployment, lack of
13educational or occupational skills attainment, dislocation from
14high-wage and high-benefit employment, low levels of literacy or
15English proficiency, disability status, or welfare dependency,
16including members of all of the following groups:

17(1) Displaced homemakers.

18(2) Low-income individuals.

19(3) Indians, Alaska Natives, and Native Hawaiians, as those
20terms are defined in Section 3221 of Title 29 of the United States
21Code.

22(4) Individuals with disabilities, including youths who are
23individuals with disabilities.

24(5) Older individuals.

25(6) Ex-offenders.

26(7) Homeless individuals, as defined in Section 14043e-2(6) of
27Title 42 of the United States Code, or homeless children and
28youths, as defined in Section 11434a(2) of Title 42 of the United
29States Code.

30(8) Youth who are in, or have aged out of, the foster care system.

31(9) Individuals who are English language learners, individuals
32who have low levels of literacy, and individuals facing substantial
33cultural barriers.

34(10) Eligible migrant and seasonal farmworkers, as defined in
35Section 3322(i) of Title 29 of the United States Code.

36(11) Individuals within two years of exhausting lifetime
37eligibility under Part A of Title IV of the Social Security Act (42
38 U.S.C. Sec. 601 et seq.).

39(12) Single parents, including single, pregnant women.

40(13) Long-term unemployed individuals.

P6    1(14) Out-of-school youth.

2(15) Any other groups as the Governor determines to have
3barriers to employment.

4(k) “Industry cluster” means a geographic concentration or
5emerging concentration of interdependent industries with direct
6service, supplier, and research relationships, or independent
7industries that share common resources in a given regional
8economy or labor market. An industry cluster is a group of
9employers closely linked by common product or services,
10workforce needs, similar technologies, and supply chains in a given
11regional economy or labor market.

12(l) “Industry or sector partnership” means a workforce
13collaborative, convened or acting in partnership with the board or
14a local board, that does the following:

15(1) Organizes key stakeholders in an industry cluster into a
16working group that focuses on the shared goals and human
17resources needs of the industry cluster and that includes, at the
18appropriate stages of development of the partnership:

19(A) Representatives of multiple businesses or other employers
20in the industry cluster, including small and medium-sized
21employers when practicable.

22(B) One or more representatives of a recognized state labor
23organization or central labor council, or another labor
24representative, as appropriate.

25(C) One or more representatives of an institution of higher
26education with, or another provider of, education or training
27programs that support the industry cluster.

28(2) The workforce collaborative may include representatives of
29any of the following:

30(A) State or local government.

31(B) State or local economic development agencies.

32(C) State boards or local boards, as appropriate.

33(D) A state workforce agency or entity providing employment
34services.

35(E) Other state or local agencies.

36(F) Business or trade associations.

37(G) Economic development organizations.

38(H) Nonprofit organizations, community-based organizations,
39or intermediaries.

40(I) Philanthropic associations.

P7    1(J) Industry associations.

2(K) Other organizations, as determined to be necessary by the
3members comprising the industry sector or partnership.

4(m) “Industry sector” means those firms that produce similar
5products or provide similar services using somewhat similar
6business processes, and are closely linked by workforce needs,
7within a regional labor market.

8(n) “Local labor federation” means a central labor council that
9is an organization of local unions affiliated with the California
10Labor Federation or a local building and construction trades council
11affiliated with the State Building and Construction Trades Council
12of California.

13(o) “Sector strategies” means methods of prioritizing
14investments in competitive and emerging industry sectors and
15industry clusters on the basis of labor market and other economic
16data indicating strategic growth potential, especially with regard
17to jobs and income, and exhibit the following characteristics:

18(1) Focus workforce investment in education and workforce
19training programs that are likely to lead to jobs providing economic
20security or to an entry-level job with a well-articulated career
21pathway into a job providing economic security.

22(2) Effectively boost labor productivity or reduce business
23barriers to growth and expansion stemming from workforce supply
24problems, including skills gaps and occupational shortages by
25directing resources and making investments to plug skills gaps
26and provide education and training programs for high-priority
27occupations.

28(3) May be implemented using articulated career pathways or
29lattices and a system of stackable credentials.

30(4) May target underserved communities, disconnected youths,
31incumbent workers, and recently separated military veterans.

32(5) Frequently are implemented using industry or sector
33partnerships.

34(6) Typically are implemented at the regional level where sector
35firms, those employers described in subdivisions (j) and (l), often
36share a common labor market and supply chains. However, sector
37strategies may also be implemented at the state or local level
38depending on sector needs and labor market conditions.

39(p) “Workforce Innovation and Opportunity Act of 2014” means
40the federal act enacted as Public Law 113-128.

P8    1(q) (1) “Earn and learn” includes, but is not limited to, a
2program that does either of the following:

3(A) Combines applied learning in a workplace setting with
4compensation allowing workers or students to gain work experience
5and secure a wage as they develop skills and competencies directly
6relevant to the occupation or career for which they are preparing.

7(B) Brings together classroom instruction with on-the-job
8training to combine both formal instruction and actual paid work
9experience.

10(2) “Earn and learn” programs include, but are not limited to,
11all of the following:

12(A) Apprenticeships.

13(B) Preapprenticeships.

14(C) Incumbent worker training.

15(D) Transitional and subsidized employment, particularly for
16individuals with barriers to employment.

17(E) Paid internships and externships.

18(F) Project-based compensated learning.

19(r) “Out-of-school youth” means an individual who meets the
20definition in Section 3164(a)(1)(B) of Title 29 of the United States
21Code.

22(s) “School operating in partnership with United States
23Department of Labor programs” means a school that serves
24out-of-school youth through a partnership that includes, but is not
25limited to, any of the following:

26(1) The California Workforce Development Board or local
27workforce development board.

28(2) Federally affiliated Youth Build programs.

29(3) Federal job corps training or instruction provided pursuant
30to a memorandum of understanding with the federal provider.

31(4) The California Conservation Corp or local conservation
32corps certified by the California Conservation Corp pursuant to
33Section 14406 or 14507.5 of the Public Resources Code.

34

SEC. 2.  

Section 14013 of the Unemployment Insurance Code
35 is amended to read:

36

14013.  

The board shall assist the Governor in the following:

37(a) Promoting the development of a well-educated and highly
38skilled 21st century workforce.

39(b) Developing, implementing, and modifying the State Plan.
40The State Plan shall serve as the comprehensive framework and
P9    1coordinated plan for the aligned investment of all federal and state
2workforce training and employment services funding streams and
3programs. To the extent feasible and when appropriate, the State
4Plan should reinforce and work with adult education and career
5technical education efforts that are responsive to labor market
6trends.

7(c) The review of statewide policies, of statewide programs,
8and of recommendations on actions that should be taken by the
9state to align workforce, education, training, and employment
10funding programs in the state in a manner that supports a
11comprehensive and streamlined workforce development system
12in the state, including the review and provision of comments on
13the State Plan, if any, for programs and activities of one-stop
14partners that are not core programs.

15(d) Developing and continuously improving the statewide
16workforce investment system, including:

17(1) The identification of barriers and means for removing
18barriers to better coordinate, align, and avoid duplication among
19the programs and activities carried out through the system.

20(2) The development of strategies to support the use of career
21pathways for the purpose of providing individuals, including
22low-skilled adults, youth, and individuals with barriers to
23employment, including individuals with disabilities, with workforce
24investment activities, education, and supportive services to enter
25or retain employment. To the extent permissible under state and
26federal laws, these policies and strategies should support linkages
27between kindergarten and grades 1 to 12, inclusive, and community
28college educational systems in order to help secure educational
29and career advancement. These policies and strategies may be
30implemented using a sector strategies framework and should
31ultimately lead to placement in a job providing economic security
32or job placement in an entry-level job that has a well-articulated
33career pathway or career ladder to a job providing economic
34security.

35(3) The development of strategies for providing effective
36outreach to and improved access for individuals, including
37individuals with barriers to employment, and employers who could
38benefit from services provided through the workforce development
39system.

P10   1(4) The development and expansion of strategies for meeting
2the needs of employers, workers, and jobseekers, particularly
3through industry or sector partnerships related to in-demand
4industry sectors and occupations, including policies targeting
5resources to competitive and emerging industry sectors and industry
6clusters that provide economic security and are either high-growth
7sectors or critical to California’s economy, or both. These industry
8sectors and clusters shall have significant economic impacts on
9the state and its regional and workforce development needs and
10have documented career opportunities.

11(5) Recommending adult and dislocated worker training policies
12and investments that offer a variety of career opportunities while
13upgrading the skills of California’s workforce. These may include
14training policies and investments pertaining to any of the following:

15(A) Occupational skills training, including training for
16nontraditional employment.

17(B) On-the-job training.

18(C) Incumbent worker training in accordance with Section
193174(d)(4) of Title 29 of the United States Code.

20(D) Programs that combine workplace training with related
21instruction, which may include cooperative education programs.

22(E) Training programs operated by the private sector.

23(F) Skill upgrading and retraining.

24(G) Entrepreneurial training.

25(H) Transitional jobs in accordance with Section 3174(d)(5) of
26Title 29 of the United States Code.

27(I) Job readiness training provided in combination with any of
28the services described in subparagraphs (A) to (H), inclusive.

29(J) Adult education and literacy activities provided in
30combination with any of the services described in subparagraphs
31(A) to (G), inclusive.

32(K) Customized training conducted with a commitment by an
33employer or group of employers to employ an individual upon
34successful completion of the training.

35(e) The identification of regions, including planning regions,
36for the purposes of Section 3121(a) of Title 29 of the United States
37Code, and the designation of local areas under Section 3121 of
38Title 29 of the United States Code, after consultation with local
39boards and chief elected officials.

P11   1(f) The development and continuous improvement of the
2one-stop delivery system in local areas, including providing
3assistance to local boards, one-stop operators, one-stop partners,
4and providers with planning and delivering services, including
5training services and supportive services, to support effective
6delivery of services to workers, job seekers, entrepreneurs, and
7employers.

8(g) Recommending strategies to the Governor for strategic
9training investments of the Governor’s 15-percent discretionary
10funds.

11(h) Developing strategies to support staff training and awareness
12across programs supported under the workforce development
13system.

14(i) The development and updating of comprehensive state
15performance accountability measures, including state adjusted
16levels of performance, to assess the effectiveness of the core
17programs in the state as required under Section 3141(b) of Title
1829 of the United States Code. As part of this process the board
19shall do all of the following:

20(1) Develop a workforce metrics dashboard, to be updated
21annually, that measures the state’s human capital investments in
22workforce development to better understand the collective impact
23of these investments on the labor market. The workforce metrics
24dashboard shall be produced using existing available data and
25resources that are currently collected and accessible to state
26agencies. The board shall convene workforce program partners to
27develop a standardized set of inputs and outputs for the workforce
28metrics dashboard. The workforce metrics dashboard shall do all
29of the following:

30(A) Provide a status report on credential attainment, including
31training completion, degree attainment, and participant earnings
32from workforce education and training programs. The board shall
33publish and distribute the final report.

34(B) Request an opportunity to present relevant portions of the
35final report, including summary data and performance metrics, at
36least once a calendar year to the State Board of Education and the
37California Community College Board.

38(C) Provide demographic breakdowns, including, to the extent
39possible, race, ethnicity, age, gender, veteran status, wage and
P12   1credential or degree outcomes, and information on workforce
2outcomes in different industry sectors.

3(D) Measure, at a minimum and to the extent feasible with
4existing resources, the performance of the following workforce
5programs: community college career technical education, the
6Employment Training Panel, Title I and Title II of the federal
7Workforce Investment Act of 1998, Trade Adjustment Assistance,
8and state apprenticeship programs.

9(E) Measure participant earnings in California, and to the extent
10feasible, in other states. The Employment Development Department
11shall assist the board by calculating aggregated participant earnings
12using unemployment insurance wage records, without violating
13any applicable confidentiality requirements.

14(2) The State Department of Education is hereby authorized to
15collect the social security numbers of adults participating in adult
16education programs so that accurate participation in those programs
17can be represented in the report card. However, an individual shall
18not be denied program participation if he or she refuses to provide
19a social security number. The State Department of Education shall
20keep this information confidential and shall only use this
21information for tracking purposes, in compliance with all applicable
22state and federal law.

23(3) (A) Participating workforce programs, as specified in
24subparagraph (D) of paragraph (1), shall provide participant data
25in a standardized format to the Employment Development
26Department.

27(B) The Employment Development Department shall aggregate
28data provided by participating workforce programs and shall report
29the data, organized by demographics, earnings, and industry of
30employment, to the board to assist the board in producing the
31annual workforce metrics dashboard.

32(j) The identification and dissemination of information on best
33practices, including best practices for all of the following:

34(1) The effective operation of one-stop centers, relating to the
35use of business outreach, partnerships, and service delivery
36strategies, including strategies for serving individuals with barriers
37to employment.

38(2) The development of effective local boards, which may
39include information on factors that contribute to enabling local
P13   1boards to exceed negotiated local levels of performance, sustain
2fiscal integrity, and achieve other measures of effectiveness.

3(3) Effective training programs that respond to real-time labor
4market analysis, that effectively use direct assessment and prior
5learning assessment to measure an individual’s prior knowledge,
6skills, competencies, and experiences, and that evaluate such skills,
7and competencies for adaptability, to support efficient placement
8into employment or career pathways.

9(k) The development and review of statewide policies affecting
10the coordinated provision of services through the state’s one-stop
11delivery system described in Section 3151(e) of Title 29 of the
12United States Code, including the development of all of the
13following:

14(1) Objective criteria and procedures for use by local boards in
15assessing the effectiveness and continuous improvement of
16one-stop centers described in Section 3151(e) of Title 29 of the
17United States Code.

18(2) Guidance for the allocation of one-stop center infrastructure
19funds under Section 3151(h) of Title 29 of the United States Code.

20(3) Policies relating to the appropriate roles and contributions
21of entities carrying out one-stop partner programs within the
22one-stop delivery system, including approaches to facilitating
23equitable and efficient cost allocation in such a system.

24(l) The development of strategies for technological
25improvements to facilitate access to, and improve the quality of,
26services and activities provided through the one-stop delivery
27system, including such improvements to all of the following:

28(1) Enhance digital literacy skills, as defined in Section 9101
29of Title 20 of the United States Code, referred to in this division
30as “digital literacy skills.”

31(2) Accelerate the acquisition of skills and recognized
32postsecondary credentials by participants.

33(3) Strengthen the professional development of providers and
34workforce professionals.

35(4) Ensure the technology is accessible to individuals with
36disabilities and individuals residing in remote areas.

37(m) The development of strategies for aligning technology and
38data systems across one-stop partner programs to enhance service
39delivery and improve efficiencies in reporting on performance
40accountability measures, including the design and implementation
P14   1of common intake, data collection, case management information,
2and performance accountability measurement and reporting
3processes and the incorporation of local input into such design and
4implementation, to improve coordination of services across
5one-stop partner programs.

6(n) The development of allocation formulas for the distribution
7of funds for employment and training activities for adults, and
8youth workforce investment activities, to local areas as permitted
9under Sections 3163(b)(3) and 3173(b)(3) of Title 29 of the United
10States Code.

11(o) The preparation of the annual reports described in paragraphs
12(1) and (2) of Section 3141(d) of Title 29 of the United States
13Code.

14(p) The development of the statewide workforce and labor
15market information system described in Section 49l-2(e) of Title
1629 of the United States Code.

17(q) The development of other policies as may promote statewide
18objectives for, and enhance the performance of, the workforce
19development system in the state.

20(r) Helping individuals with barriers to employment, including
21low-skill, low-wage workers, the long-term unemployed, and
22members of single-parent households, achieve economic security
23and upward mobility by implementing policies that encourage the
24attainment of marketable skills relevant to current labor market
25trends.

26

SEC. 3.  

Section 14200 of the Unemployment Insurance Code
27 is amended to read:

28

14200.  

(a) The local chief elected officials in a local workforce
29development area shall form, pursuant to guidelines established
30by the Governor and the board, a local workforce development
31board to plan and oversee the workforce investment system.

32(b) The Governor shall periodically certify one local board for
33each local area in the state, following the requirements of the
34federal Workforce Innovation and Opportunity Act of 2014.

35(c) The Governor shall establish, through the California
36Workforce Development Board, standards for certification of
37high-performance local workforce development boards. The
38California Workforce Development Board shall, in consultation
39with representatives from local workforce development boards,
40initiate a stakeholder process to determine the appropriate
P15   1measurable metrics and standards for high-performance
2certification. These standards shall be implemented on or before
3January 1, 2013, and the first certification of high-performance
4boards shall occur on or before July 1, 2013. Certification and
5recertification of each high-performance local workforce
6development board shall occur thereafter midway through the
7implementation of the local and regional plans required by the
8Workforce Innovation and Opportunity Act. In order to meet the
9standards for certification, a high-performance local workforce
10development board shall do all of the following:

11(1) Consistently meet or exceed negotiated performance goals
12for all of the measures in each of the three federal Workforce
13Innovation and Opportunity Act of 2014 customer groups, which
14consist of adults, dislocated workers, and youth.

15(2) Consistently meet the statutory requirements of this division.

16(3) Develop and implement local policies and a local strategic
17plan that meets all of the following requirements:

18(A) Meets all local and regional planning requirements specified
19under the federal Workforce Innovation and Opportunity Act of
202014.

21(B) Is consistent with the California Workforce Development
22Board State Plan.

23(C) Describes the actions that the board shall take to implement
24local policies in furtherance of its goals.

25(D) Serves as a written account of intended future courses of
26action aimed at achieving the specific goals of the local and state
27board within a specific timeframe.

28(E) Explains what needs to be done, by whom, and when each
29action is required to occur in order to meet those goals.

30(4) Demonstrate that the local planning process involves key
31stakeholders, including the major employers and industry groups
32in the relevant regional economy and organized labor.

33(5) Demonstrate that the local planning process takes into
34account the entire workforce training pipeline, including partners
35in K-12 education, schools operating in partnership with United
36States Department of Labor programs, career technical education,
37the community college system, other postsecondary institutions,
38and other local workforce development areas operating in a relevant
39regional economy.

P16   1(6) Demonstrate that the local planning process and plan are
2data driven, and that policy decisions at the local level are evidence
3based. Each high-performance local workforce development board
4shall use labor market data to develop and implement the local
5plan, taking care to steer resources into programs and services that
6are relevant to the needs of each workforce development area’s
7relevant regional labor market and high-wage industry sectors.
8Local workforce development areas shall demonstrate an
9evidence-based approach to policymaking by establishing
10performance benchmarks and targets to measure progress toward
11local goals and objectives.

12(7) Demonstrate investment in workforce initiatives, and,
13specifically, training programs that promote skills development
14and career ladders relevant to the needs of each workforce
15investment area’s regional labor market and high-wage industry
16sectors.

17(8) Establish a youth strategy, including out-of-school youth,
18aligned with the needs of each workforce investment area’s regional
19labor market and high-wage industry sectors.

20(9) Establish a business service plan that integrates local
21business involvement with workforce initiatives. This plan at a
22minimum shall include all of the following:

23(A) Efforts to partner with businesses to identify the workforce
24training and educational barriers to attract jobs in the relevant
25regional economy, existing skill gaps reducing the competitiveness
26of local businesses in the relevant regional economies, and potential
27emerging industries that would likely contribute to job growth in
28the relevant regional economy if investments were made for
29training and educational programs.

30(B) An electronic system for both businesses and job seekers
31to communicate about job opportunities.

32(C) A subcommittee of the local workforce development board
33that further develops and makes recommendations for the business
34service plan for each local workforce development board in an
35effort to increase employer involvement in the activities of the
36local workforce development board. The subcommittee members
37should be comprised of business representatives on the local
38workforce development board who represent both the leading
39industries and employers in the relevant regional economy and
40potential emerging sectors that have significant potential to
P17   1contribute to job growth in the relevant regional economy if
2investments were made for training and educational programs.

3(d) The Governor and the Legislature, as part of the annual
4budget process, in consultation with the California Workforce
5Development Board, shall annually reserve a portion of the
615-percent discretionary fund made available pursuant to the
7federal Workforce Innovation and Opportunity Act of 2014 for
8the purpose of providing performance incentives to
9high-performance local workforce development boards. The
10remaining discretionary funds shall continue to be available for
11other discretionary purposes as provided for in the federal
12Workforce Innovation and Opportunity Act of 2014.

13(e) Only a workforce development board that is certified as a
14high-performance local workforce development board by the
15California Workforce Development Board shall be eligible to
16receive any incentive money reserved for high-performance local
17workforce development boards, as described in subdivision (d).
18A board that is not certified as a high-performance local workforce
19development board shall not receive any portion of the money
20reserved for high-performance local workforce development
21boards, as described in subdivision (d).

22(f) The California Workforce Development Board shall establish
23a policy for the allocation of incentive moneys to high-performance
24local workforce development boards.

25(g) To the extent permitted by the Workforce Innovation and
26Opportunity Act of 2014, the California Workforce Development
27Board may consider the utilization of incentive grants, or direct
28assistance, or both, to local workforce development boards for the
29purposes of this section.

30(h) There shall not be a requirement to set aside federal
31Workforce Innovation and Opportunity Act of 2014 funds for the
32purposes of subdivision (d), (e), (f), or (g) in years when the federal
33government significantly reduces the share of federal Workforce
34Innovation and Opportunity Act of 2014 funds appropriated to the
35state for statewide discretionary purposes below the federal
36statutory amount of 15 percent.

37

SEC. 4.  

Section 14206 of the Unemployment Insurance Code
38 is amended to read:

P18   1

14206.  

Consistent with the requirements of the Workforce
2Innovation and Opportunity Act, the local board shall do all of the
3following:

4(a) In partnership with the chief elected official for the local
5area involved, develop and submit a local plan to the Governor
6that meets the requirements of the Workforce Innovation and
7Opportunity Act. If the local area is part of a planning region that
8includes other local areas, the local board shall collaborate with
9the other local boards and chief elected officials from such other
10local areas in the preparation and submission of a regional plan as
11described in the Workforce and Innovation and Opportunity Act.

12(b) In order to assist in the development and implementation of
13the local plan, the local board shall do all of the following:

14(1) Carry out analyses of the economic conditions in the region,
15the needed knowledge and skills for the region, the workforce in
16the region, and workforce development activities, including
17education and training, in the region described in Section
183123(b)(1)(D) of Title 29 of the United States Code, and regularly
19update such information.

20(2) Assist the Governor in developing the statewide workforce
21and labor market information system described in Section 15(e)
22of the Wagner-Peyser Act (29 U.S.C. Sec. 49l-2(e)), specifically
23in the collection, analysis, and utilization of workforce and labor
24market information for the region.

25(3) Conduct such other research, data collection, and analysis
26related to the workforce needs of the regional economy as the
27board, after receiving input from a wide array of stakeholders,
28determines to be necessary to carry out its functions.

29(c) Convene local workforce development system stakeholders
30to assist in the development of the local plan under Section 3123
31of Title 29 of the United States Code and in identifying nonfederal
32expertise and resources to leverage support for workforce
33development activities. The local board, including standing
34committees, may engage such stakeholders in carrying out the
35functions described in this subdivision.

36(d) Lead efforts to engage with a diverse range of employers
37and with entities in the region involved to do all of the following:

38(1) Promote business representation, particularly representatives
39with optimal policymaking or hiring authority from employers
P19   1whose employment opportunities reflect existing and emerging
2employment opportunities in the region, on the local board.

3(2) Develop effective linkages, including the use of
4intermediaries, with employers in the region to support employer
5utilization of the local workforce development system and to
6support local workforce investment activities.

7(3) Ensure that workforce investment activities meet the needs
8of employers and support economic growth in the region, by
9enhancing communication, coordination, and collaboration among
10employers, economic development entities, and service providers.

11(4) Develop and implement proven or promising strategies for
12meeting the employment and skill needs of workers and employers,
13like the establishment of industry and sector partnerships, that
14provide the skilled workforce needed by employers in the region,
15and that expand employment and career advancement opportunities
16for workforce development system participants in in-demand
17industry sectors or occupations.

18(e) (1) With representatives of secondary and postsecondary
19education programs, lead efforts in the local area to develop and
20implement career pathways within the local area by aligning the
21employment, training, education, and supportive services that are
22needed by adults and youth, particularly individuals with barriers
23to employment.

24(2) For purposes of this subdivision, “secondary and
25postsecondary education programs” include, but are not limited
26to, adult education consortiums, school districts, schools operating
27in partnership with United States Department of Labor programs,
28and community colleges partnering with local boards.

29(f) Lead efforts in the local area to accomplish both of the
30following:

31(1) Identify and promote proven and promising strategies and
32initiatives for meeting the needs of employers, and workers and
33jobseekers, including individuals with barriers to employment, in
34the local workforce development system, including providing
35physical and programmatic accessibility, in accordance with
36Section 3248 of Title 29 of the United States Code, if applicable,
37and applicable provisions of the Americans with Disabilities Act
38of 1990 (42 U.S.C. Sec. 12101 et seq.), to the one-stop delivery
39system.

P20   1(2) Identify and disseminate information on proven and
2promising practices carried out in other local areas for meeting
3these needs.

4(g) Develop strategies for using technology to maximize the
5accessibility and effectiveness of the local workforce development
6system for employers, and workers and jobseekers, by doing all
7of the following:

8(1) Facilitating connections among the intake and case
9management information systems of the one-stop partner programs
10to support a comprehensive workforce development system in the
11local area.

12(2) Facilitating access to services provided through the one-stop
13delivery system involved, including facilitating the access in remote
14areas.

15(3) Identifying strategies for better meeting the needs of
16individuals with barriers to employment, including strategies that
17augment traditional service delivery, and increase access to services
18and programs of the one-stop delivery system, such as improving
19digital literacy skills.

20(4) Leveraging resources and capacity within the local workforce
21development system, including resources and capacity for services
22for individuals with barriers to employment.

23(h) In partnership with the chief elected official for the local
24area, shall conduct oversight for local youth workforce investment
25activities as required under the federal Workforce Innovation and
26Opportunity Act, ensure the appropriate use and management of
27the funds as required under the Workforce Innovation and
28Opportunity Act, and, for workforce development activities, ensure
29the appropriate use, management, and investment of funds to
30maximize performance outcomes as required under the federal
31Workforce Innovation and Opportunity Act.

32(i) Negotiate and reach agreement on local performance
33accountability measures, as described in Section 3141(c) of Title
3429 of the United States Code, with the chief elected official and
35the Governor.

36(j) Select and provide access to system operators, service
37providers, trainers, and educators, in a manner consistent with the
38requirements of the Workforce Innovation and Opportunity Act
39and applicable state laws, including all of the following:

P21   1(1) Consistent with Section 3151(d) of Title 29 of the United
2States Code, and with the agreement of the chief elected official
3for the local area, designate or certify one-stop operators as
4described in Section 3151(d)(2)(A) of Title 29 of the United States
5Code and terminate for cause the eligibility of these operators.

6(2) Consistent with Section 3153 of Title 29 of the United States
7Code, identify eligible providers of youth workforce investment
8activities in the local area by awarding grants or contracts on a
9competitive basis, except as provided in Section 3153(b) of Title
1029 of the United States Code, based on the recommendations of
11the youth standing committee, if such a committee is established
12for the local area and terminate for cause the eligibility of these
13providers.

14(3) Consistent with Section 3152 of Title 29 of the United States
15Code and paragraph (4) of subdivision (d) of Section 14020,
16identify eligible providers of training services in the local area.

17(4) If the one-stop operator does not provide career services
18described in Section 3174(c)(2) of Title 29 of the United States
19Code in a local area, identify eligible providers of those career
20services in the local area by awarding contracts.

21(5) Consistent with Section 3152 of Title 29 of the United States
22Code and paragraphs (2) and (3) of Section 3174(c) of Title 29 of
23the United States Code, work with the state to ensure there are
24sufficient numbers and types of providers of career services and
25training services, including eligible providers with expertise in
26assisting individuals with disabilities and eligible providers with
27expertise in assisting adults in need of adult education and literacy
28activities, serving the local area and providing the services involved
29in a manner that maximizes consumer choice, as well as providing
30opportunities that lead to competitive integrated employment for
31individuals with disabilities.

32(k) Consistent with the requirements of the Workforce
33Innovation and Opportunity Act, coordinate activities with
34education and training providers in the local area, including
35providers of workforce development activities, providers of adult
36education and literacy activities under Title II of the Workforce
37Innovation and Opportunity Act, providers of career and technical
38education, as defined in Section 2302 of Title 20 of the United
39States Code, and local agencies administering plans under Title I
40of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 720 et seq.),
P22   1other than Section 112 or Part C of that Title (29 U.S.C. Sec. 732,
2741).

3

SEC. 5.  

Section 14221 of the Unemployment Insurance Code
4 is amended to read:

5

14221.  

The local plan shall include all of the following:

6(a) A description of the strategic planning elements consisting
7of each of the following:

8(1) An analysis of the regional economic conditions, including,
9existing and emerging in-demand industry sectors and occupations
10and the employment needs of employers in those industry sectors
11and occupations.

12(2) An analysis of the knowledge and skills needed to meet the
13employment needs of the employers in the region, including
14employment needs in in-demand industry sectors and occupations.

15(3) An analysis of the workforce in the region, including current
16 labor force employment and unemployment data, and information
17on labor market trends, and the educational and skill levels of the
18workforce in the region, including individuals with barriers to
19employment.

20(4) An analysis of the workforce development activities,
21including education and training, in the region, including an
22analysis of the strengths and weaknesses of such services, and the
23capacity to provide such services, to address the identified
24education and skill needs of the workforce, including individuals
25with employment barriers, and the employment needs of employers
26in the region.

27(5) A description of the local board's strategic vision and goals
28for preparing an educated and skilled workforce, including youth
29and individuals with barriers to employment, including goals
30relating to the performance accountability measures based on
31primary indicators of performance described in Section
323141(b)(2)(A) of Title 29 of the United States Code in order to
33support regional economic growth and economic self-sufficiency.

34(6) Taking into account analyses described in paragraphs (1) to
35(4), inclusive, a strategy to work with the entities that carry out
36the core programs to align resources available to the local area, to
37achieve the strategic vision and goals described in paragraph (5).

38(b) A description of the workforce development system in the
39local area that identifies the programs that are included in that
40system and how the local board will work with the entities carrying
P23   1out core programs and other workforce development programs to
2support alignment to provide services, including programs of study
3authorized under the Carl D. Perkins Career and Technical
4Education Act of 2006 (20 U.S.C. Sec. 2301 et seq.), that support
5the strategy identified in the State Plan under Section 3112(b)(1)(E)
6of Title 29 of the United States Code.

7(c) A description of how the local board, working with the
8entities carrying out core programs, will expand access to
9employment, training, education, and supportive services for
10eligible individuals, particularly eligible individuals with barriers
11to employment, including how the local board will facilitate the
12development of career pathways and co-enrollment, as appropriate,
13in core programs, and improve access to activities leading to a
14recognized postsecondary credential, including a credential that
15is an industry-recognized certificate or certification, portable, and
16stackable.

17(d) A description of the strategies and services that will be used
18in the local area in order to facilitate engagement of employers,
19including small employers and employers in in-demand industry
20sectors and occupations, in workforce development programs,
21support a local workforce development system that meets the needs
22of businesses in the local area, better coordinate workforce
23development programs and economic development, and strengthen
24linkages between the one-stop delivery system and unemployment
25insurance programs. This may include the implementation of
26initiatives such as incumbent worker training programs, on-the-job
27training programs, customized training programs, industry and
28 sector strategies, career pathways initiatives, utilization of effective
29business intermediaries, and other business services and strategies,
30designed to meet the needs of employers in the corresponding
31region in support of the strategy described in paragraph (5) of
32 subdivision (a).

33(e) A description of how the local board will coordinate
34workforce investment activities carried out in the local area with
35economic development activities carried out in the region in which
36the local area is located, or planning region, and promote
37entrepreneurial skills training and microenterprise services.

38(f) A description of the one-stop delivery system in the local
39area, including all of the following:

P24   1(1) A description of how the local board will ensure the
2continuous improvement of eligible providers of services through
3the system and ensure that such providers meet the employment
4needs of local employers, and workers and jobseekers.

5(2) A description of how the local board will facilitate access
6to services provided through the one-stop delivery system,
7including in remote areas, through the use of technology and
8through other means.

9(3) A description of how entities within the one-stop delivery
10system, including one-stop operators and the one-stop partners,
11will comply with Section 3248 of Title 29 of the United States
12Code, if applicable, and applicable provisions of the Americans
13with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.)
14regarding the physical and programmatic accessibility of facilities,
15programs and services, technology, and materials for individuals
16with disabilities, including providing staff training and support for
17addressing the needs of individuals with disabilities.

18(4) A description of the roles and resource contributions of the
19one-stop partners.

20(g) A description and assessment of the type and availability of
21adult and dislocated worker employment and training activities in
22the local area.

23(h) A description of how the local board will coordinate
24workforce investment activities carried out in the local area with
25statewide rapid response activities, as described in Section
263174(a)(2)(A) of Title 29 of the United States Code.

27(i) A description and assessment of the type and availability of
28youth workforce investment activities in the local area, including
29activities for youth who are individuals with disabilities, which
30description and assessment shall include an identification of
31successful models of such youth workforce investment activities.

32(j) A description of how the local board will coordinate
33education and workforce investment activities carried out in the
34local area with relevant secondary and postsecondary education
35programs and activities to coordinate strategies, enhance services,
36and avoid duplication of services.

37(k) A description of how the local board will coordinate
38workforce investment activities carried out under this article in
39the local area with the provision of transportation, including public
P25   1transportation, and other appropriate supportive services in the
2local area.

3(l) A description of plans and strategies for, and assurances
4concerning, maximizing coordination of services provided by the
5state employment service under the Wagner-Peyser Act (29 U.S.C.
6Sec. 49 et seq.) and services provided in the local area through the
7one-stop delivery system, to improve service delivery and avoid
8duplication of services.

9(m) A description of how the local board will coordinate
10workforce investment activities carried out in the local area with
11the provision of adult education and literacy activities in the local
12area, including a description of how the local board will carry out,
13consistent with subparagraphs (A) and (B)(i) of Section
143122(d)(11) of Title 29 of the United States Code and Section
153322 of Title 29 of the United States Code, the review of local
16applications.

17(n) A description of the replicated cooperative agreements, as
18defined in Section 3122(d)(11) of Title 29 of the United States
19Code between the local board or other local entities described in
20Section 101(a)(11)(B) of the Rehabilitation Act of 1973 (29 U.S.C.
21Sec. 721(a)(11)(B)) and the local office of a designated state agency
22or designated state unit administering programs carried out under
23Title I of that act, other than Section 112 or Part C of that Title (29
24U.S.C. Secs. 732 and 741) and subject to Section 3151(f) of Title
2529 of the United States Code, in accordance with Section
26101(a)(11) of the Rehabilitation Act of 1973 (29 U.S.C. Sec.
27721(a)(11)) with respect to efforts that will enhance the provision
28of services to individuals with disabilities and to other individuals,
29such as cross training of staff, technical assistance, use and sharing
30of information, cooperative efforts with employers, and other
31efforts at cooperation, collaboration, and coordination.

32(o) An identification of the entity responsible for the disbursal
33of grant funds described in Section 3122(d)(12)(B)(i)(III) of Title
3429 of the United States Code, as determined by the chief elected
35official or the Governor under Section 3122(d)(12)(B)(i) of Title
3629 of the United States Code.

37(p) A description of the competitive process to be used to award
38the subgrants and contracts in the local area for activities carried
39out pursuant to this act.

P26   1(q) A description of the local levels of performance negotiated
2with the Governor and chief elected official pursuant to Section
33141(c) of Title 29 of the United States Code, to be used to measure
4the performance of the local area and to be used by the local board
5for measuring the performance of the local fiscal agent, where
6appropriate, eligible providers, and the one-stop delivery system,
7in the local area.

8(r) A description of the actions the local board will take toward
9becoming or remaining a high-performing board, consistent with
10the factors developed by the board pursuant to Section 3111(d)(6)
11of Title 29 of the United States Code. This federal requirement is
12separate and apart from state standards pertaining to the
13certification of high-performance local workforce development
14boards.

15(s) A description of how training services will be provided in
16accordance with Section 3174(c)(3)(G) of Title 29 of the United
17States Code, including, if contracts for the training services will
18be used, how the use of such contracts will be coordinated with
19the use of individual training accounts and how the local board
20will ensure informed customer choice in the selection of training
21programs regardless of how the training services are to be provided.

22(t) A description of the process used by the local board,
23consistent with subsection (d), to provide an opportunity for public
24comment, including comment by representatives of businesses and
25comment by representatives of labor organizations, and input into
26the development of the local plan, prior to submission of the plan.

27(u) A description of how one-stop centers are implementing and
28transitioning to an integrated, technology-enabled intake and case
29 management information system for programs carried out under
30this act and programs carried out by one-stop partners.

31(v) Any other information as the Governor may require.

32

SEC. 6.  

Section 14510 of the Unemployment Insurance Code
33 is amended to read:

34

14510.  

(a) To the extent permitted by federal law, school
35districts, county offices of education, and schools operating in
36partnership with United States Department of Labor programs are
37eligible to apply to local workforce development boards to provide
38basic skills training and skills necessary for attaining a secondary
39school diploma.

P27   1(b) Among the appropriate education providers considered for
2out-of-school youth services, the boards shall include for
3begin delete considerationend deletebegin insert consideration, but not be limited to,end insert programs that
4 specialize in a secondary school diploma from a school accredited
5by the Western Association of Schools and Colleges from the
6relevant geographic area.



O

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